Gambling Webhosting and Licensing

Thursday, 23 August 2012

With new licenses becoming available in Spain, many online poker rooms have opened their doors during the past three weeks in this country. In spite of all the excitement the high rollers in this game have been holding back, because of the uncertainty around the country’s income tax laws and structures.

According to Sacha Michaud, president of Spanish gaming association Jdigital, professional poker players and “high-value” customers have been staying away from Spanish online poker rooms in large part due to the looming income tax that Spanish players are required to pay.

Although the new online gambling providers have been doing good business it could be much better if these high-value players were not hesitant, because of the uncertainty about the tax they will have to pay on their winnings. This has slowed down traffic in the poker rooms, particularly in cash games.
There is no getting away from paying this tax since Spain’s gaming regulator can extract information on winnings on these poker games under the terms of being granted a license in Spain, and the online poker providers cannot refuse to supply the required data.

This may be reason for concern for the online gambling operators in that country, especially considering the financial stress the country is experiencing currently.

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